U.S. says sanctions slashed Iran's oil revenues

The U.S. Treasury says American economic sanctions against Iran have drastically reduced the country's oil exports and revenue.

Reuters reports that Treasury Undersecretary David Cohen noted the fall in Iranian oil revenues at the New York University School of Law on Wednesday. He added that the U.S. will keep up the pressure on Tehran to prevent it from attaining nuclear capabilities.

The U.S. has imposed widespread sanctions on Iran's international trade partners, forcing companies that deal with Iran to cease or significantly reduce their business with that country.

Cohen claimed U.S. efforts have reduced Iran's daily oil exports from 2.4 million barrels a day to about a million.

"This decrease in exports is costing Iran about $5 billion a month, forcing the Iranian government to cut its budget because of a lack of revenue," Cohen maintained.

Cohen added that the sanctions have effectively cut off Iranian banks from accessing the international market. "Today, the Iranian government is relegated to the backwaters of the international financial system, and they know it," the U.S. Treasury official said.

Iran has condemned the sanctions and holds to the claim that its nuclear program is peaceful and the sanctions against it are illegal.